AIG Slashes Bonuses, Will Still Pay Out $100M Tomorrow

News not sitting well with lawmakers
By Will McCahill,  Newser Staff
Posted Feb 2, 2010 9:16 PM CST
An AIG office in New York.   (Wikimedia Commons)

(Newser) – Good news, if you’re not keen on bailed-out firms handing out bonuses: AIG has trimmed by $20 million those due to current and former employees in March. The bad news: The insurance giant that was the largest recipient of US bailout funds is still going to pay out $100 million in bonuses, and do it tomorrow, ahead of schedule. Lawmakers, predictably, aren’t happy.

“AIG has taxpayers over a barrel,” Republican Sen. Charles Grassley tells the New York Times tonight, displeased that the company continues to honor its pre-bailout agreements. “The Obama administration has been outmaneuvered. And the closed-door negotiations just add to the skepticism that the taxpayers will ever get the upper hand.”

My Take on This Story
Show results without voting  |